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Phablet use in 2014 will grow significantly with 362 million worldwide shipments this year, representing 30% of all smartphones, IDC reported during its recent Worldwide Mobility Predictions 2014 webinar.

"It's about a user preference and what people are willing to sacrifice in that larger screen," he said.

Some of these devices already have their place. Phablets with an integrated stylus are used in businesses for doing signatures on devices, Hazelton said.

"When you're looking to be really productive on a smartphone, it's easier when the screen is larger," he said. "Still, it's kind of a religious debate over what size device people like to have."

At least when it comes to tablets, enterprises prefer a larger screen, according to data from Yankee Group's IT Decision Maker survey in September 2013 of 285 U.S. IT professionals and executives. Of those surveyed, 76% prefer a tablet that is nine to 10 inches, while 22% prefer seven to eight inches.

"The driver for a larger than five-inch screen smartphone is driven by the desire to do more on the smartphone," Hazelton said.

Better opportunities for line-of-business applications exist on tablets over smartphones, according to Eric Klein, senior mobility analyst for VDC Research Group Inc. in Natick, Mass.

"Smartphones are complimentary devices for a lot of business users," Klein said. "So there's an opportunity there [for phablets]."

IDC predicts Apple will release its phablet this year. Llamas believes Apple will work to produce a phablet with a good resolution and also suspects the company is working with developers to ensure plenty of applications will be available for such a device.

Apple did not respond to requests for comment.

"Apple will be able to address this very quickly with vendors so that when it comes to launch later this year it's going to be a full-blown experience with plenty of apps on a perfect resolution for user's eyes," Llamas said.

Hazelton thinks the driver for a large-screen iPhone will be from the pent-up demand from the already wide iPhone user base.

"Having a larger screen is something both the enterprise and users want," Hazelton said. "If you can save money by getting a larger iPhone rather than an iPhone and an iPad, that's something people will definitely do."

Klein believes the success of the iPad mini points to potential success for an iPhone with a screen of either five or six inches. But the big question remains on how applications will be provisioned, and he said developers are focused on working in HTML5 to accommodate screen size adjustments.

"That's an important element, to have a consistent look and feel for your apps regardless of the size of the screen," Klein said.

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